How many more years of pain for the Perth market?

3 Paris Way seems pretty cheap for Karrinyup development stock but turns out it's R20 so not developable.

Paris Way was notorious in the 90s for street fights and unrest. I'm sure it's much better now.

 

Thanks

Be interested to know comparisons similar product 2013/2014???

 

34 Paris Way sold in 2014 for $825k (was renovated)
13,19 and 25 Paris Way sold in 2013 for $740k, $780k, $780k

Most of those sales were private stock/semi renovated whereas the auction yesterday was Housing Commission stock so most likely at land value.

 

REIWA stats are up. I'm not sure what to make of the latest snapshot. Listings are up which was actually a welcome for me as I'm in search mode and need new listings to find the right product.

 

No idea what to make of this market??

Are there any suburbs worth looking at for developing property anyone? I sm on the hunt

 

I must agree, it's a strange time. Even stock markets got the jitters.

 

seasonally listings will rise at this time of year, and they are still below what they were in both 2017 and 2016. However saying that, they are rising faster than both of those years.

They should flatten off any week and start a slow descent into winter listings before the spring jump again.

What is grabbing my interest is rental listings, which continue to fall. On realestate.com.au they are down 20% on last year. At this rate, they will be back to 2014 levels by year-end. And development approvals are still not picking up, so the 12 month supply outlook is staying flat. For owners this year will be good, and next year will be better.

I expect sentiment will be relatively flat until spring, where last year the CoreLogic index dropped from ~97 to ~95 and it has sat since. That is why Perth is showing a consistent 2% YoY fall, even though prices are flat. But come spring, even if perth doesn't move the YoY result will return neutral. by then, rental listings will be tight, new supply still won't have picked up.. IMO i am seeing a recipe for growth then.

 

Perth Weekly Sales & Rental Figures Snapshot|27 March 2018

 

Anyone been game to try a rent increase?

 

Suicide

 

Not yet.
I have a couple of contracts up in third quarter this year.

Hoping to be able to bump them up slightly (3%) then.

Had to cut rents +10% the last few years. So getting back to where we were would be nice.

Blacky

 

Me too.
Fingers crossed.

 

Just happy to have a tenant at the moment. Would be keen to hear how others go with any increases in the next few months.

 

Not me. Rent prices in my area dropped a lot more than the average drops for Perth. I am happy to be getting what I am right now

 

Same here.
I am coming down from 380 p.w. (2016, kicked them out), 290 p.w. (2017, tenants moved interstate) to currently 310 p.w (2018).
Happy with having my property tenanted 34.5/36 months over the last 3 years

 

Current tenants are my first tenants in this IP. Although a few people think I’m crazy I only purchased this Perth IP in Nov 17. It was a bit of a speculative investment in terms of trying to time the bottom and only took 5 weeks to get someone in the place so I’m keen to gauge how others are going come lease renewal time.

 

I bought mine in June 2016! After a big reno it didn't go onto the market until October 2017. Took about 6 weeks to get a tenant.

 

Just renewing the lease on one of mine at the current price.

 

Like clockwork - listings down by 400 this week.

 

Before we were seeing a downward trend in properties listed for sale and properties listed for rent.

Perhaps supply is stabilising now based on the recent REIWA data?

Hopefully not though and fingers crossed it continues to decrease.